Extension for Filer Who Will Not Owe?

[Chowdahead]

I have a client who will not owe. However, they do not wish to file their return yet because they will be buying a house in the next couple of months and don't want to have to file an amendment to claim the First-Time Home Buyers Credit. I told them I was pretty sure that an extension is not required because they will not have a tax due.

I just want to confirm here, is that correct?

[JohnH]

I ALWAYS file an extension, even when no tax appears to be due. If something unexpected pops up later, you have no excuse for not having filed the extension. A piece of paper is pretty good insurance against an ugly surprise.

I filed an extension today for someone expecting a refund of over $4K. But if he calls me up a couple of weeks from now and says "I forgot to tell you about that $25K early withdrawal form my IRA", I won't be doing any explaining.

[miatax]

My two cents.. File the extension.

[mcb39]

File the Extension. It only takes a minute. I have already had a client get a late filing penalty even though she didn't owe any tax, but because she filed late without an extension.

[bstaxes]

File the extension. It is a CYA. just in case something comes up. Any of my clients not ready to file by 4/15 get an extension.

[TAXBILLY]

I agree. File an extension and take the surprises out of the situation if something later comes up.

taxbilly

[Chowdahead]

Thanks. The client will instead just file and get their refund now and then amend later if they buy a house.